AdSense Arbitrage

Google AdSense
Google AdSense

Arbitrage is the practice of taking advantage of price differences between markets. Stockbrokers do this by buying in one country and immediately selling it in another for a profit.

Arbitrage, AdWords, and AdSense

Some internet entrepreneurs use arbitrage to take advantage of the price difference between some advertising keywords in AdWords and AdSense.

Basically, such a process begins with someone buying an inexpensive AdWords campaign, such as "cheap widgets" for 10 cents.

The ads direct anyone clicking on them to a web page that is optimized for a more expensive keyword, such as "expensive widgets" for 5 dollars per click. If even a fraction of people visiting "expensivewidgets.com" clicks on the ads, the arbitrageur has turned a reasonable profit.

There is nothing explicitly forbidden about using arbitrage to profit from AdSense. Typically, though, it's a technique employed by low-quality content producers, and Google has shut down some very profitable accounts that were using arbitrage to earn profits.